Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1887-06-30
BANK OFFICERS ARRESTED.
Three of the Principal Officers of the Fl
deity Bank of Cincinnati Arrested
Fraud Freely Charged.

Three of the Principal Officers of the Fl
deity Bank of Cincinnati Arrested
Fraud Freely Charged.
CINCINNATI, June 22.-Much excitement
occurred yesterday morning when 1T was
known that the Bank Examiner had closed
the Fidelity Bank. Iu the afternoon the
Union National Bank, of Cleveland, brought
suit in attachment against the bank to re-
cover sol. 1914 asserting that the defend
ans corporation fraudulently and criminal
Il Incurred the obligation for which suit
was brought.
Attorney J. n. Follett, when asked what
was the basis of his charge of fraud, re-
piled that the Fidelity Bank, before incur
ring the liability, notified his client that
10000 had been forwarded TO be
placed to its credit, when, in fact,
no money was forwarded. 1t was only
week ago yesterday that the Fidelity
Bank sent out circular denying The
charges of an anonymous circular. which
charged them with tamperfng with specu-
lation in wheat. In that the officers say
1--WE are doing larger business than ever
before and our deposits have reached this
day the highest point in our history" After
stating that it allowed two and half per
cent. interest on daily balances calculated
monthly and made no charge for exchange,
they say: I'VE have the largest surplus
and the largest deposits of any National
Bank in Ohio.'' There does not seem to be
any evidence discovered to prove these
statements were not true. The depletion
OF the surplus by the withdrawal OF de-
poSits has been since that time, and,
so far known, the bank examiner
| did not base his action on the deple-
ton of the funds but upon the violation of
| the National Banking law. This was shown
by the significant action taken at four
O'Clock yesterday afternoon, when, under
affidavits drawn by Assistant United States
| District Attorney j. Z. Bruce, and sworn
\ to by Bank Examiner Powell, Deputy Mar
| shall Rohner went to the Fidelity Bank and
arrested Vice-President E. L. Harper,
| Cashier AInmi Baldwin and Assistant
| Cashier Benjamin E. Hopkins. They were
| taken before United States Commissioner
| Hooper where they gave bail for future ap-
| pearance. Mr. Harper's bond was fixed at
| S75, 000 and the other two at $4,000 each.
The affidavit against Harper charges that
| he did on or about June ID, unlawfully mis-.
| apply the funds and credits of the Fidelity
| National Banking Association, and did issue
| certificates of deposit without the authori-
! ty of the directory of said association, and
| with intent to defraud to-wit. one certif-
| cate for $3OO,O0 and one for 5000 000.'
1t is understood the affidavits upon which
the arrests were made do not cover all the
| transactions of that kind, and that further
charges will be made as the examination
=
conversation is the failure of the great
| bank. 1t is peculiar feature that it is gen
orally recognized as not bank failure, but
maladministration of portion of its Off
GERS without the knowledge of its president
and directors Mr. Briggs Swift, president,
has been known as one of the most con-
sentative of men, but it is said he has not
been active in his management that duty
! having devolved upon Mr. Harper Within
the past month he has been trying to ascer-
tain what was being DONE but has been pref
ty successfully thwarted. While the three
accused officers are popular men, especially
Messrs. Harper and Hopkins, there is no
limit to the condemnation of the use CT
bank funds or credit in speculation ven
lures AS the situation is discussed
the feeling grows stronger that the
worst revelations remain to be made.
| This is based on the fact that the
bank examiner so early in his ex-
animation took the great responsibility of
causing the arrest of these three men when
the punishment, in the case of conviction,
is imprisonment in the penitentiary. Talk
among bankers as to the effect on other
banks is all of cheerful tone. None eX-
pect any trouble
E l. Harper made an individual assign
ment to Eugene Zimmerman yesterday,
and his firm, E. l.. Harper & Co., dealers
In iron, etc, also assigned to Zimmerman.
The failures are the direct result of the
closing of the Fidelity Bank. Asset
| s., 900, O00; liabilities not given.